School districts wary of impact

Officials at Pueblo City Schools (D60) and Pueblo County District 70 are certain about the increases they will pay in health insurance premiums under the Patient Protection and Affordable Care Act, or Obamacare, but are more concerned about the uncertainties of the program.

“We’re not concerned about all the politics, but what we’re concerned about is not knowing what the long-term and short-term impact will be,” said Ryan Elarton, director of business services for District 70. “We’re concerned about the whole thing because there are a lot of unknowns.”

D60 officials said they, too, have many unanswered questions with regard to the implementation of the health care act, including the amount it will cause the district’s insurance premiums to increase.

“We’re still reviewing the cost. At this time, we have no concrete figure,” said Karen Cordova, interim chief financial officer for the district.

Elarton said District 70’s premiums will increase 2.3 percent this year and 2014, or about $123,000 a year.

Both districts have Anthem Blue Cross Blue Shield as their insurance carrier.

Under the rules of Obamacare, Elarton said District 70 did have to make some coverage changes.

“Like all health carriers, they had to provide 100 percent coverage of preventative care and had to make changes with dependents and eligibility,” Elarton said. “These were not things just specific to our district.”

With regard to the anticipated impact of Obamacare on the districts down the road, Cordova and Elarton said that is unknown at this time.

Officials from both districts said they are not concerned with their respective plans becoming a Cadillac plan in the future.

Cadillac plans are those that provide extensive coverage and are well-paid plans.

“We currently offer a no-cost plan to employees,” Cordova said.

Elarton said District 70 also offers a cheaper plan.

Whether the districts anticipate any reoccurring fees associated with the health care act, Elarton and Cordova said it’s too early to tell.

“Until they finalize the rules, there are so many unknowns,” Elarton said.

Unlike the city, neither district received a refund from Anthem because the carrier spent more on administrative costs than what is allowed under the Obamacare rules.

The act mandates health insurance companies spend at least 85 percent of revenues on health care costs. If they spend less than that, the insurance carriers are required to reimburse the entities.